Tether Abandons EU License Bid Over MiCA Reserve Requirements

Tether's European Union license application was dropped due to a regulatory requirement that major stablecoin issuers hold at least 60% of their reserves in bank deposits, according to Tether CEO Paolo Ardoino.

The company cited the EU's Markets in Crypto-Assets (MiCA) regulation as the reason for withdrawing its application. MiCA requires stablecoin issuers to meet certain reserve requirements, which Tether claims does not fit its approach to managing reserves.

This decision comes after the European Central Bank and central banks in the European Union expressed opposition to the 60% bank-deposit requirement.